TMI Blog2021 (1) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... this appeal of the assessee. - ITA NOS. 6908 & 6909/DEL/2019 - - - Dated:- 7-1-2021 - SHRI H.S. SIDHU, JUDICIAL MEMBER Assessee by : Mr. V.K. Sabharwal, Advocate Department by : Mr. Prakash Dubey, Sr. DR. ORDER PER H.S. SIDHU, JM These appeals are filed by the assessee against the respective impugned orders both dated 28.6.2019 passed in the quantum appeal as well as in penalty appeal relating to assessment year 2010-11 by the Ld. CIT(A)-13. 2. The grounds raised in the Quantum appeal No. 6908/Del/2019 read as under:- 1. That the order passed u/s 147/143(3) of the Income Tax Act, 1961 on 10.11.2017 and upheld by the Ld. CIT(A) on 28.06.2019, was perverse to the law and to the facts of the case, because no notice if any was ever issued u/s 143(2) prior to complete the assessment proceedings, therefore, the assessment framed becomes barred by limitation. 2. That the order passed u/s 143(3)/147 of the Income Tax Act 1961, was further illegal against the law and to the facts of the case, therefore, not tenable, because of getting and granting approval u/s 151 of the Income Tax Act in a mechanical manner as putting Yes only by the Pr. CIT. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt appeal. PRAYER:- It is, therefore, prayed: 1. That the order passed u/s 143(3)/147 of the Act, may please be quashed or alternatively the illegal and impugned additions made of ₹ 7,45,118/- may please be deleted / quashed. 2. That the interest charged u/s 234B and penalty proceedings initiated u/s 271(l)(c) of the Act, may also be waived being consequential to the illegal and impugned additions made and relief claimed therefrom. 3. That any other relief which this Hon ble Court may please be deemed fit and proper on the facts and in the circumstances of the case. It is prayed accordingly. 3. Later on the assessee has also filed the following additional grounds:- 1. That the order passed u/s. 147/143(3) of the I.T. Act, 1961, on 10.11.2017 for the assessment year 2010- 11 was further perverse to the law and to the facts of the case because of getting and granting approval u/s. 151 of the Income Tax Act in a mechanical manner as putting Yes Only by the Pr. CIT. 2. That the assessment order passed u/s. 147 /143(3) of the Income Tax Act, 1961 on 10.11.2017 for the Assessment Year 2010-11 was illegal and bad in law because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cancelled. 2. That any other relief with this Hon ble Court may please be deemed fit and proper on the facts and in the circumstances of this case. It is prayed accordingly. 5. The brief facts of the case are that the assessee filed his return of income declaring income of ₹ 1,98,452/- on 31.3.2011 and the same was processed u/s. 143(1) of the Income Tax Act, 1961 (in short Act ). The case of the assessee was selected for scrutiny on the basis of AIR information available with the department that the assessee has made the cash deposit of ₹ 44,96,955/- in his savings bank account with Punjab National Bank during the financial year 2009-10 relating to assessment year 2010-11. Accordingly, notice u/s. 148 of the Act was issued on 27.3.2017 after recording the reasons. In response to the same, the AR of the assessee filed a letter dated 14.6.2017 stating that his return of income on 31.3.2011 may be treated his return of income in response to the notice u/s. 148 of the Act. In response to various statutory notices issued u/s. 142(1) of the Act, on different dates, the AR of the assessee appeared from time to time and filed necessary evidences supporting th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision in the case of NTPC vs. CIT 229 ITR 389 (SC), the additional grounds may be admitted and adjudicated first. To support his arguments on these legal grounds, he relied upon the decision of the Hon ble Supreme Court of India in the case of CIT vs. S. Goyanka Lime Chemical Ltd. reported in (2015) 64 taxmann.com 313 (SC) arising out of order of Hon ble High Court of Madhya Pradesh in CIT vs. S. Goyanka Lime Chemicals Ltd. (2015) 56 taxmann.com 390 (MP) and the judgment of the Hon ble Supreme Court of India in the case of ACIT vs. Hotel Blue Moon, 324 ITR 372 (2010) (SC). In view of above, he requested that both the legal grounds are covered in favour of the assessee by the aforesaid decisions, hence, the additional grounds may be decided in favour of the assessee. As regards penalty appeal is concerned, Ld. Counsel for the assessee submitted that the if the quantum appeal is decided in favour of the assessee, the penalty may also be deleted being infructuous. 7. On the contrary, Ld. DR relied upon the orders of the authorities below. 8. I have heard both the parties and perused the records especially the orders of the revenue authorities alongwith the contentions ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, there has been no application of mind by the Addl. CIT before granting the approval. (Para 19). (B) Hon ble Supreme Court of India in the case of CIT vs. S. Goyanka Lime Chemical Ltd. reported in (2015) 64 taxmann.com 313 (SC) arising out of order of Hon ble High Court of Madhya Pradesh in CIT vs. S. Goyanka Lime Chemicals Ltd. (2015) 56 taxmann.com 390 (MP). Section 151, read with section 148 of Income Tax Act, 1961 Income escaping assessment Sanction for issue of notice (Recording of satisfaction) High Court by impugned order held that where Joint Commissioner recorded satisfaction in mechanical manner and without application of mind to accord sanction for issuing notice under section 148, reopening of assessment was invalid Whether Special Leave Petition filed against impugned order was to be dismissed Held, Yes (in favour of the Assessee). 9. As regards the penalty appeal No. 6909/Del/2019 is concerned, since I have already quashed the reassessment and delete the addition in dispute in the quantum appeal, as aforesaid, hence, the penalty, does not stand in the eyes of law, therefore, the same is deleted as such, by also allowing this appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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